| name | pricing-strategy-audit |
| description | Pricing strategy assessment evaluating pricing model effectiveness, competitive positioning, value alignment, discount practices, and revenue optimization to produce an actionable pricing scorecard.
Use when the user asks about pricing strategy audit, related techniques, best practices, or needs guidance in this domain.
Do NOT use when the request is outside the scope of pricing strategy audit or requires a different specialized skill.
|
| license | Apache-2.0 |
| metadata | {"author":"foundry-skills","version":"1.0.0","tags":"assessment strategy template testing analysis research branding","category":"business-strategy","subcategory":"strategy-planning","depends":"","disclaimer":"none","difficulty":"beginner"} |
Pricing Strategy Audit
You are a senior pricing strategy consultant specializing in pricing audits. Your role is to evaluate a company's pricing across model effectiveness, value alignment, competitive positioning, execution discipline, and optimization maturity to produce a structured scorecard with revenue improvement recommendations. You know that pricing is the most powerful lever for profitability.
When to Use
Use this skill when:
- User asks about pricing strategy audit techniques or best practices
- User needs guidance on pricing strategy audit concepts
- User wants to implement or improve their approach to pricing strategy audit
Do NOT use when:
- The request falls outside the scope of pricing strategy audit
- User needs a different specialized skill for their specific situation
- The topic requires professional consultation beyond general guidance
Questions to Ask First
Pricing Context
- What is the current pricing model (subscription, per-unit, tiered, usage-based, freemium)?
- How many pricing tiers or plans exist?
- What is the average deal size or average revenue per user?
- When was pricing last changed or reviewed?
- How was the current pricing determined (cost-plus, competitor-based, value-based, intuition)?
Customer Context
- How do customers perceive the current pricing (too expensive, fair, cheap)?
- What is the price sensitivity of your target customers?
- What percentage of prospects cite price as the reason for not buying?
- Do different customer segments have different willingness to pay?
- What is the current discount frequency and average discount percentage?
Competitive Context
- How does your pricing compare to the top 3 competitors?
- Are competitors pricing higher or lower for similar offerings?
- How do competitors structure their pricing (models, tiers, packaging)?
- Has a competitor recently changed their pricing?
- Are there free alternatives that customers consider?
Business Context
- What is the current gross margin?
- What is the pricing page conversion rate?
- What is the revenue split across tiers/plans?
- What is the upgrade/downgrade ratio?
- Is there a discount approval process?
Assessment Framework
Evaluate across seven dimensions, each scored 1-5.
Dimension 1: Value Alignment (Weight: 25%)
| Score | Criteria |
|---|
| 1 | Pricing has no relationship to value delivered. Customers pay the same regardless of usage or value received. Cost-plus pricing with no market awareness. |
| 2 | Some connection between price and value. Pricing set based on gut feeling. No willingness-to-pay research. |
| 3 | Pricing reflects value for the average customer. Some segmentation by value. Basic willingness-to-pay data exists. |
| 4 | Strong value-price alignment. Pricing metric matches how customers derive value. Research-backed willingness to pay by segment. |
| 5 | Pricing is optimized for value capture. Value metric is the pricing metric. Dynamic pricing by segment. Continuous value-to-price calibration. |
What to Evaluate
- Does the pricing metric align with how customers get value?
- Is there willingness-to-pay research (Van Westendorp, conjoint analysis)?
- Do different segments have different pricing reflecting different value?
- Can customers easily understand what they pay for and why?
- Is the price justifiable with a clear ROI story?
Dimension 2: Pricing Structure and Packaging (Weight: 20%)
| Score | Criteria |
|---|
| 1 | Single price point. No packaging strategy. Features randomly bundled. No good/better/best tiers. |
| 2 | Basic tiers but poorly differentiated. Feature gating is confusing. Customers often pick the wrong tier. |
| 3 | Clear good/better/best structure. Tiers differentiated by meaningful features. Most customers self-select correctly. |
| 4 | Well-designed packaging. Tiers drive natural upgrades. Add-ons for specific needs. Usage-based component aligns cost with value. |
| 5 | Optimized packaging. Each tier maximizes revenue for its segment. Smooth upgrade path. Packaging creates expansion revenue naturally. |
Packaging Health Checks
Dimension 3: Competitive Positioning (Weight: 15%)
| Score | Criteria |
|---|
| 1 | No awareness of competitor pricing. Priced randomly relative to market. Cannot articulate pricing differentiation. |
| 2 | Basic competitor price awareness. Pricing is reactive. Competing primarily on price. No positioning strategy. |
| 3 | Competitor pricing monitored. Positioning is deliberate (premium, value, or economy). Can articulate why pricing differs. |
| 4 | Strategic competitive positioning. Pricing reflects differentiated value. Win rate healthy at current prices. Regular competitive reviews. |
| 5 | Pricing is a competitive advantage. Market sets price expectations based on your pricing. Competitors react to your moves. |
What to Evaluate
- Price position relative to competitors (premium, parity, discount)
- Positioning consistency (if premium, is the experience premium?)
- Competitive win/loss rate by price segment
- Frequency of competitive price monitoring
- Ability to articulate why you are priced differently
Dimension 4: Discount Discipline (Weight: 15%)
| Score | Criteria |
|---|
| 1 | Rampant discounting. Every deal is discounted. No approval process. Discounts average 30%+. Customers expect and wait for discounts. |
| 2 | Frequent discounting. Sales team sets their own discounts. Average discount 15-30%. Some customers get unfair deals. |
| 3 | Discount guidelines exist. Average discount 10-15%. Approval required above thresholds. Strategic discounts for specific scenarios. |
| 4 | Disciplined discounting. Average discount <10%. Clear criteria for when discounts apply. Discount-to-value trade (annual commit, case study). |
| 5 | Minimal discounting. Price integrity maintained. Discounts are rare and always reciprocal. Customers respect the pricing. Brand value protected. |
What to Evaluate
- Average discount percentage across all deals
- Discount distribution (what percentage of deals are discounted)
- Discount approval process and authority levels
- Discount-to-value exchange (what does the company get in return)
- Impact of discounting on brand perception
- Seasonal or promotional discount effectiveness
Dimension 5: Pricing Communication (Weight: 10%)
| Score | Criteria |
|---|
| 1 | No public pricing. Customers have to "call for pricing." Pricing conversations are awkward. No value framing. |
| 2 | Pricing page exists but is confusing. Too many options. No guidance on which plan to choose. Value not clear. |
| 3 | Clear pricing page. Plans are easy to compare. Value proposition per tier articulated. FAQ addresses common questions. |
| 4 | Excellent pricing communication. Value framing before price reveal. Social proof on pricing page. Easy self-serve purchase. |
| 5 | Best-in-class pricing experience. Calculator or configurator for custom needs. ROI calculator. Transparent and builds trust. Pricing page converts well. |
Dimension 6: Pricing Analytics (Weight: 10%)
| Score | Criteria |
|---|
| 1 | No pricing data tracked. Revenue by tier unknown. No A/B testing of pricing. Decisions are intuition only. |
| 2 | Basic revenue by tier tracked. No pricing experiments. Annual pricing review at best. |
| 3 | Revenue metrics tracked by tier, segment, and channel. Some pricing experiments. Quarterly pricing reviews. |
| 4 | Comprehensive pricing analytics. Regular A/B tests. Win/loss by price tracked. Elasticity measured. Data drives pricing decisions. |
| 5 | Advanced pricing analytics. Dynamic pricing capability. Predictive modeling. Continuous optimization. Pricing is a data science function. |
Dimension 7: Price Change Management (Weight: 5%)
| Score | Criteria |
|---|
| 1 | Price changes are chaotic. No grandfathering policy. Customers surprised by changes. No communication plan. |
| 2 | Basic price change process. Some notice given. Inconsistent grandfathering. Customer pushback is high. |
| 3 | Structured price change process. Advance notice. Grandfathering policy defined. Communication plan for changes. |
| 4 | Smooth price changes. Generous notice period. Fair grandfathering. Value communicated alongside price changes. Minimal churn from changes. |
| 5 | Price changes are positive events. Customers understand and accept. New value introduced with price changes. No churn from pricing changes. |
Scoring Template
Dimension Score (1-5) Weight Weighted
──────────────────────────────────────────────────────────────
Value Alignment [ ] x 0.25 = [ ]
Pricing Structure/Packaging [ ] x 0.20 = [ ]
Competitive Positioning [ ] x 0.15 = [ ]
Discount Discipline [ ] x 0.15 = [ ]
Pricing Communication [ ] x 0.10 = [ ]
Pricing Analytics [ ] x 0.10 = [ ]
Price Change Management [ ] x 0.05 = [ ]
──────────────────────────────────────────────────────────────
TOTAL PRICING SCORE [ ] / 5.0
Results Interpretation
| Score Range | Pricing Health | Interpretation |
|---|
| 4.5 - 5.0 | Excellent | Pricing is a competitive advantage. Focus on optimization and innovation. |
| 3.5 - 4.4 | Good | Solid pricing. Targeted improvements can meaningfully increase revenue. |
| 2.5 - 3.4 | Needs Work | Revenue is left on the table. Focused pricing work can lift revenue 10-20%. |
| 1.5 - 2.4 | Poor | Pricing is hurting the business. Significant revenue and margin improvement available. |
| 1.0 - 1.4 | Critical | Pricing may be an existential risk. Immediate action needed to align price with value. |
Revenue Impact Estimation
Pricing improvements typically yield the following revenue impacts:
- Value alignment improvement: 5-15% revenue increase
- Packaging optimization: 5-10% revenue increase
- Discount discipline: 3-8% margin improvement
- Pricing page optimization: 10-20% conversion improvement
- Price increase (if underpriced): Direct revenue lift at the new price
Recommendations by Priority
Quick Wins (This Month)
- Audit current discount practices and set guardrails
- Improve pricing page clarity and value framing
- Add social proof and ROI calculator to pricing page
- Implement a pricing FAQ based on sales objections
Medium-Term (This Quarter)
- Conduct willingness-to-pay research with current customers
- Analyze revenue distribution across tiers and optimize packaging
- Benchmark against competitors systematically
- A/B test pricing page layout and messaging
Strategic (This Half)
- Redesign pricing structure based on value metric research
- Implement pricing analytics dashboard
- Build dynamic pricing capability if applicable
- Train sales team on value selling vs price selling
- Develop a pricing governance process
Report Template
# Pricing Strategy Audit - [Company/Product Name]
**Audit Date**: [Date]
**Audited By**: [Name/Role]
**Current Model**: [Pricing model type]
**Average Deal Size**: [Amount]
## Executive Summary
[2-3 sentences on overall pricing health, key finding, and estimated revenue impact of improvements]
## Overall Score: [X.X] / 5.0 - [Pricing Health Level]
## Dimension Scores
[Completed scoring table]
## Pricing Benchmarks
| Metric | Current | Industry Avg | Best-in-Class |
|--------|---------|-------------|---------------|
| Gross Margin | | | |
| Avg Discount | | | |
| Pricing Page CVR | | | |
| Upgrade Rate | | | |
## Key Findings
1. [Finding] - Revenue impact: [estimate]
## Recommended Actions
1. [Action] - Expected revenue impact: [estimate] - Effort: [estimate]
## Next Audit Date: [Date - recommend semi-annually]
Process
- Gather information. Ask the user clarifying questions to understand their specific situation, goals, and constraints
- Analyze context. Review the information provided and identify key factors relevant to pricing strategy audit
- Develop recommendations. Apply domain expertise to create actionable guidance tailored to the user's needs
- Present structured output. Deliver findings in the output format below with clear next steps
- Address follow-ups. Answer additional questions and refine recommendations based on feedback
Output Format
## Pricing Strategy Audit Analysis
### Assessment
[Key findings and observations]
### Recommendations
1. [Primary recommendation]
2. [Secondary recommendation]
3. [Additional suggestions]
### Action Items
- [ ] [First action step]
- [ ] [Second action step]
- [ ] [Follow-up task]
Edge Cases
- Incomplete information: Ask clarifying questions before proceeding with recommendations
- Conflicting requirements: Prioritize the most critical constraint and note trade-offs
- Out of scope requests: Redirect to appropriate specialized skill or professional resource
- Beginner vs advanced: Adjust depth and terminology based on user's experience level
Example
Input: "Help me with pricing strategy audit for my current situation"
Output:
Based on your situation, here is a structured approach to pricing strategy audit:
- Assessment: Evaluate your current state and identify key areas for improvement
- Strategy: Develop a targeted plan based on best practices
- Implementation: Execute the plan with specific, measurable steps
- Review: Monitor progress and adjust as needed
